Case Studies

High-End Repositioning in a White-Hot Market

Andante, a 576 unit property in Phoenix, AZ, was purchased in May 2017 for $85.25M. Security Properties developed an investment thesis focused on the projected influx of high-paying jobs in the market and sought to capitalize on it by creating product to meet the impending demand. With that in mind, SP's team drafted an ambitious plan to bring all units to a uniform, high-end spec as well as modernize the clubhouse and expansive pool area.

The comprehensive unit renovations feature warmly lit bathroom mirror surrounds, quartz countertops throughout, updated lighting, and a tech package at a cost of nearly $15K per unit.

Andante ultimately sold in January 2021 for $145.25M which equates to a deal-level IRR of 33.5% and a 2.6 equity multiple.

Transit Oriented Development in a Burgeoning Seattle Neighborhood

Angeline, a 193 unit mixed-use apartment building in Seattle, WA, was developed by Security Properties and opened its doors in July 2015. Situated in Columbia City, a neighborhood overflowing with charm and steeped in history, the building had big shoes to fill.

This development presented a unique challenge for SP: how to honor the adjacent landmark-designated business district while creating much-needed density near the soon-to-open light rail station. To top it off, Security Properties sought to integrate the building not only into the skyline but also into the historically income diverse neighborhood. Angeline gracefully checked every box.

Through a partnership with the city of Seattle, Angeline set aside 20% of its units to be affordably priced for means-limited renters. For this, SP provides reduced rents for the income restricted units in exchange for property tax incentives. Coupling this with space tailor made for anchor tenant PCC – a Seattle-based grocery co-op – Angeline has woven into the fabric of the neighborhood.

Historical Preservation Meets Modern Refinement

Honeyman Hardware Lofts, an 89 unit property in Portland, OR, was purchased in July 2012 for $20.25M.

Located in the heart of Portland’s famed Pearl District, Honeyman Hardware Lofts is an eye-catching 7 story building with features uncommon in the Pacific Northwest including brick walls, vaulted ceilings, and exposed wooden beams. Security Properties set out to honor these charming original features by preserving them while updating the units and common spaces with modern amenities.

In a market crowded with new developments, Honeyman offered an inimitable experience with the best of both old and new. This reimagination of the property was warmly received in the market as evidenced by the 41% growth in rental rates in a little over two years.

The property was eventually sold in November 2014 for $37.15M which netted SP’s position a 63.9% IRR and a 2.9 equity multiple.